Kotters 8 steps leading change

Summary

John P. Kotter's 8-stage process for creating major change is a renowned model for change management. It's divided into three phases: creating a sense of urgency, forming a guiding coalition, and establishing a vision; engaging and enabling the organization; and finally, implementing and sustaining change. The model emphasizes the importance of clear communication, short-term wins, and institutionalizing new approaches to ensure lasting change. However, it has faced criticism for its rigidity and lack of flexibility in different organizational contexts.

Takeaways

• 📘 John Kotter's 8-step process for leading change is a widely recognized model in change management.
• 🏫 John Kotter is a retired Harvard Business School professor and co-founder of Kotter International.
• 📅 Kotter's 8-step model was first introduced in a 1995 article in the Harvard Business Review, and further elaborated in his 1996 book 'Leading Change'.
• 🌐 The model is divided into three phases: creating a climate for change, engaging and enabling the organization, and implementing and sustaining change.
• 🚨 Step 1 is about establishing a sense of urgency by examining market trends and potential crises.
• 🤝 Step 2 involves forming a powerful guiding coalition with enough power to lead the change effort.
• 🔮 Step 3 focuses on creating a clear vision that guides the change and is easily communicable.
• 📢 Step 4 emphasizes the importance of effectively communicating the vision across all levels of the organization.
• 💪 Step 5 is about empowering others to act on the vision by removing obstacles and encouraging risk-taking.
• 🏆 Step 6 involves planning for and creating short-term wins to maintain momentum and credibility in the change effort.
• 🔄 Step 7 focuses on consolidating gains and producing more change to build on early successes.
• 🏛️ Step 8 is about institutionalizing new approaches, ensuring they become part of the organizational culture.
• 💡 Critics of the model argue that it is rigid and may not apply to all types of organizational changes, as some steps might be irrelevant in certain contexts.

Q & A

Who is John P. Kotter and what is his association with the eight-stage process for leading change?

John P. Kotter is a retired Harvard Business School professor of leadership and a co-founder of Kotter International. He is widely recognized for his eight-stage process for leading change, which was first introduced in a 1995 Harvard Business Review article and later expanded in his 1996 book 'Leading Change'.

What are the three main phases of Kotter's eight-stage process for leading change?

The three main phases of Kotter's eight-stage process are: 1) Creating a climate for change, covering steps 1-3; 2) Engaging and enabling the organization, covering steps 4-6; and 3) Implementing and sustaining change, covering steps 7-8.

What is the first step in Kotter's model and what actions are needed at this stage?

The first step in Kotter's model is 'Establishing a sense of urgency'. Actions needed at this stage include examining the market and competition for potential crises and opportunities, and convincing at least 75% of managers that maintaining the status quo is more dangerous than the unknown.

What are some common pitfalls associated with the first step of establishing a sense of urgency?

Common pitfalls include underestimating the difficulty of driving people out of their comfort zones and management becoming paralyzed by risks, which can hinder the transformation effort.

What is required to form a powerful guiding coalition in the second step of Kotter's model?

To form a powerful guiding coalition, you need to assemble a group with a shared commitment and enough power to lead the change effort, encouraging them to work as a team outside the normal hierarchy.

What is the significance of creating a vision in the third step, and what are the potential pitfalls?

Creating a vision directs the change effort and helps develop strategies for realizing the vision. Potential pitfalls include presenting a vision that is too complicated or vague, making it difficult to communicate and gain understanding and interest within a short time.

How should the vision be communicated according to the fourth step, and what should be avoided?

The vision should be communicated using every possible channel, including emails, meetings, and presentations, with leaders exemplifying the vision through their actions. Avoid under-communicating the vision, as inconsistent actions by leadership can quickly undermine the effort.

What actions are necessary to empower others to act on the vision in the fifth step?

Necessary actions include removing or altering systems or structures that undermine the vision, encouraging risk-taking and non-traditional ideas, and realigning incentives and performance appraisals to reflect the change vision.

Why are short-term wins important in the sixth step, and what are the risks of failing to achieve them?

Short-term wins are important to maintain momentum and ensure the overall change initiative's success. Failing to achieve short-term wins can lead to a loss of support and enthusiasm for the change effort.

What should leaders do in the seventh step to consolidate improvements and produce more change?

Leaders should use increased credibility from early wins to change systems, structures, and policies undermining the vision. They should also hire, promote, and develop dedicated employees who can help implement the vision and reinvigorate the change process with new projects and change agents.

How can new approaches be institutionalized according to the eighth step, and what pitfalls should be avoided?

New approaches can be institutionalized by articulating connections between new behaviors and corporate success, showing how these behaviors improve performance, and promoting individuals who personify the new approach. Avoid failing to create new social norms and shared values consistent with the changes.

Outlines

00:00

📚 Kotter's 8-Step Change Management Model

The paragraph introduces John P. Kotter's renowned 8-stage process for managing major change, a framework that has been influential since its publication in the Harvard Business Review in 1995. Kotter, a retired Harvard Business School professor and co-founder of Kotter International, emphasizes the importance of this model in helping organizations adapt to a constantly evolving world. The model is divided into three phases: creating a climate for change, engaging employees in the process, and implementing and sustaining change. Each of the eight steps is crucial for a successful organizational transformation, with the first step focusing on establishing a sense of urgency by examining market conditions and convincing managers of the need for change. Pitfalls such as underestimating the difficulty of moving people out of their comfort zones and the paralysis of management by risks are highlighted as areas to avoid.

05:00

🗣️ Communicating and Empowering the Vision for Change

This paragraph delves into steps four and five of Kotter's model, which involve communicating the vision for change and empowering others to act on it. It stresses the necessity of using all available channels to disseminate the new vision and the importance of leaders exemplifying the desired behaviors. The paragraph also discusses the pitfalls of inadequate communication and inconsistent actions by leadership, which can undermine change efforts. Furthermore, it highlights the need to remove or alter systems that hinder the vision and to encourage risk-taking and innovative ideas, while also addressing the challenges of dealing with individuals resistant to change.

10:02

🏆 Achieving Short-Term Wins and Consolidating Improvements

The focus of this paragraph is on steps six and seven of Kotter's model, which are about planning for and creating short-term wins and consolidating those improvements to produce more change. It underlines the importance of defining and achieving visible performance improvements to maintain momentum and the risk associated with neglecting short-term performance. The paragraph also discusses the need to use early wins to change systems and policies that undermine the vision, as well as the challenge of reinvigorating the change process with new projects and agents to prevent regression and premature declarations of victory.

15:04

🛠️ Institutionalizing New Approaches and Addressing Criticisms

The final paragraph discusses step eight of Kotter's model, which is about institutionalizing new approaches by creating new social norms and shared values that align with the changes. It emphasizes the importance of promoting individuals who embody the new approach into leadership positions. The paragraph also provides an example of a high-pressure valve manufacturer applying Kotter's model to address market share loss and financial losses, detailing the steps taken from establishing urgency to changing customer collaboration approaches. Finally, it addresses criticisms of the model's rigidity and its applicability in various organizational contexts, acknowledging that while the model provides a logical path, it may not cover all scenarios and that change management can be complex and situation-dependent.

Keywords

💡Change Management

Change management is the process of facilitating and guiding individuals and teams through periods of transition to ensure that changes are implemented smoothly and effectively. In the video's narrative, it is the overarching theme, with Kotter's 8-stage process being a model for leading change within organizations. The script discusses the importance of managing change to succeed in an ever-changing world.

💡John P. Kotter

John P. Kotter is a retired Harvard Business School professor and a co-founder of Kotter International. He is renowned for his work on leadership and change. In the video, his 8-stage process for creating major change is the central model being discussed, highlighting his significant contribution to the field of change management.

💡Urgency

Establishing a sense of urgency is the first step in Kotter's model. It refers to the need to convince stakeholders that the status quo is untenable and that immediate action is necessary. The script illustrates this by emphasizing the examination of market and competition for potential crises, which is critical in driving the change process.

💡Guiding Coalition

A guiding coalition in Kotter's model is a group of people with enough power and shared commitment to lead the change effort. The script explains that forming such a coalition is crucial for driving transformation, with examples including assembling a team with diverse skills and encouraging them to work outside the normal hierarchy.

💡Vision

Creating a vision is the third step in the model and involves developing a clear, simple, and communicable direction for the change effort. The script mentions that the vision should be easily communicated within five minutes and should evoke understanding and interest, as it directs the change process.

💡Communication

Effective communication of the vision and strategies is essential in Kotter's model. The script highlights the need for the guiding coalition to use every possible channel to communicate the new vision, ensuring that it is understood and embraced by all stakeholders.

💡Empowerment

Empowering others to act on the vision is about removing barriers and encouraging risk-taking and innovative ideas. The script discusses the importance of aligning systems and structures to support the vision, such as changing incentives and performance appraisals to reflect the change vision.

💡Short-Term Wins

Planning for and creating short-term wins is about achieving visible performance improvements to maintain momentum and confidence in the change process. The script provides an example of a new product developed in collaboration with a customer, which was a success and served as a short-term win.

💡Consolidation

Consolidating improvements and producing more change involves using early wins to make further changes in systems, structures, and policies. The script mentions that leaders must continue to reinvigorate the change process with new projects and change agents to ensure that changes become deeply embedded in the company's culture.

💡Institutionalization

Institutionalizing new approaches is the final step in Kotter's model, where new behaviors and practices become the norm within the organization. The script explains that this involves creating new social norms and shared values that are consistent with the changes, and promoting people who embody the new approach into leadership positions.

💡Transformation

Transformation refers to a profound change in an organization's culture, structure, or operations. The script uses the example of a high-pressure valve manufacturer that undergoes a transformation by applying Kotter's eight steps, shifting from a product-centric to a customer-centric approach.

Highlights

John P. Kotter's 8-stage process for creating major change is a widely recognized model for change management.

Kotter is a retired Harvard Business School professor of leadership and co-founder of Kotter International.

His article on the 8-stage process was published in the Harvard Business Review in 1995, previewing his 1996 book 'Leading Change'.

The model is divided into three main phases, each covering specific steps for leading change in an organization.

Phase one focuses on creating a climate for change and a shared understanding of the difficult assignment ahead.

Phase two is about engaging employees in the process and enabling them to effect change.

Phase three involves implementing and sustaining change within the organization.

The first step is establishing a sense of urgency by examining market and competition for potential crises and opportunities.

Step two involves forming a powerful guiding coalition with shared commitment and power to lead change.

Creating a vision to direct the change effort is step three, with strategies for its realization.

Step four emphasizes communicating the vision and strategies through various channels and by example.

Step five is about empowering others to act on the vision by removing or altering systems that undermine it.

Step six involves planning for and creating short-term wins to ensure the success of the overall change initiative.

Step seven consolidates improvements and produces more change by changing systems and structures and hiring dedicated employees.

The final step, step eight, is institutionalizing new approaches by creating new social norms and shared values.

An example of applying Kotter's model is provided with a manufacturer of high-pressure valves facing market share loss.

Criticism of the model suggests it is rigid, with some arguing that changes can happen at different speeds within an organization.

The model's time frame, measured in years, may not accommodate rapidly changing circumstances.

Despite limitations, the model provides an overview of the logical path through a change process and conditions to consider.

Transcripts

John P cutters 8 stage process for

creating major change is one of the most

widely recognized models for change

management John piccata is a retired

Harvard Business School professor of

leadership Kotter is also a co-founder

of Kotter international based in Seattle

and Boston cutters article about the

eight stage process for leading change

was originally published in the spring

of 1995 in the Harvard Business Review

this article previewed Coty's 1996 book

leading change

professor kata has proven over his years

of research that following the eight

step process for leading change will

help organizations succeed in an

ever-changing world in general the model

consists of three main phases these

phases cover eight individual steps they

are sometimes also called stages in

phase one which covers the first three

steps it is about creating a climate for

change and getting a shared

understanding of the difficult

assignment which lies ahead of the

organization in Phase two which covers

the steps four through six it is about

engaging the employees in the process

and enabling the employees to affect

change in the organization in Phase

three which covers the last two steps of

the eight steps it is about implementing

and sustaining change in the

organization now we shall review each of

the eight steps individually we start at

the top of the model and then we go down

through the model one step at a time

each step is necessary when you want to

transform your organization to give your

transformation effort the best chance of

succeeding you have to take the right

actions at each stage

and avoid common pitfalls the first step

is establishing a sense of urgency

actions needed in this stage you have to

examine the market and competition for

potential crises and untapped

opportunities you have to convince at

least 75% of your managers that the

status quo is more dangerous than the

unknown pitfalls in this stage

executives sometimes underestimate how

hard it can be to drive people out of

their comfort zones management can also

become paralyzed by risks a

transformation of the organization

requires leadership from executives step

2 is forming a powerful guiding

coalition actions needed in this stage

you have to assemble a group with a

shared commitment and enough power to

lead the change effort you also have to

encourage them to work as a team outside

the normal hierarchy a major

transformation generally demands

activity outside of formal boundaries

expectations and protocol pitfalls in

this stage no prior experience in

teamwork at the top level of the

organization top management appoints

team leadership to a person without

enough power no matter how capable or

dedicated the members of the team are

groups without strong line leadership

never achieve the power that is required

to change the organization step 3 is

creating a vision actions needed in this

stage the team has to create a vision to

direct the change effort the team also

has to

velop strategies for the realization of

the vision pitfalls in this stage

presenting a vision that's too

complicated or too vague to be

communicated in five minutes if you

can't communicate the vision to someone

in five minutes or less and get a

reaction that signifies both

understanding and interest you are not

done step 4 is communicating the vision

actions needed in this stage use every

possible way to communicate the new

vision and strategies for achieving it

the vision will be referred to in emails

in meetings in presentations it will be

communicated anywhere and everywhere

teach new behaviors by example of the

guiding coalition if the focus of the

vision is on the environment the

management has to drive more

environmentally friendly cars executives

have to walk the talk professionally and

privately pitfalls in this stage the

guiding coalition is under communicating

the vision a single memo announcing the

transformation or even a series of

speeches by the CEO and the executive

team are never enough actions speak

louder than words

nothing undermines a communication

program more quickly than inconsistent

actions by leadership Step five is

empowering others to act on the vision

actions needed in this stage the guiding

coalition has to remove or alter systems

or structures undermining the vision an

organization that claims to want to be

customer focused finds its structures

fragment resources and responsibilities

for products and services they have to

change this to unleash people to do

their

best work the Coalition has to encourage

risk-taking and non-traditional ideas

activities and actions realigning

incentives and performance appraisals to

reflect the change vision can have a

profound effect on the ability to

accomplish the change vision pitfalls in

this stage failing to remove powerful

individuals who resist the change effort

they may not actively undermine the

effort but they are simply not wired to

go along with what the change requires

easy solutions to this problem don't

exist step 6 is planning for and

creating short-term wins actions needed

in this stage the guiding coalition must

define and engineer visible performance

improvements running a change effort

without attention to short-term

performance is extremely risky for

leaders in the middle of a long-term

change effort short-term wins are

essential getting these wins helps

ensure the overall change initiatives

success the leaders must recognize and

reward employees contributing to those

improvements pitfalls in this stage

failing to score successes early enough

management is leaving short-term

successes up to chance short-term wins

rarely simply happen

short-term successes are 12 to 24 months

into the change effort we are planning

for short-term wins not praying step 7

is consolidating improvements and

producing still more change actions

needed in this stage leaders must use in

increased credibility from early wins to

change systems structures and policies

undermining the vision they also have to

hire promote and develop dedicated

employees who can help them implement

the vision leaders also have to

reinvigorate the change process with new

projects and change agents pitfalls in

this stage while celebrating a win is

fine declaring the war one can be

catastrophic

until changes sink deeply into a

company's culture a process that can

take five to ten years new approaches

are fragile and subject to regression

ironically it is often a combination of

change initiators and change resistors

that creates the premature victory

celebration in their enthusiasm over a

clear sign of progress the initiators go

overboard allowing resistors to convince

troops that the war has been won the

useful changes that have been introduced

slowly disappear if nobody is pushing

the change forward step 8 is

institutionalizing new approaches

actions needed in this stage leaders

must articulate connections between new

behaviors and corporate success they

must show employees how the new

approaches behaviors and attitudes have

helped improve performance change sticks

when it becomes the way we do things

around here

pitfalls in this stage management is not

creating new social norms and shared

values consistent with changes and they

are promoting people into leadership

positions who don't personify the new

approach

now we shall review an example of the

use of the kata eight steps model with a

manufacturer of high pressure valves the

founder of the company who was an

ingenious engineer died a long time ago

today the company is a major player in

the industry and they are still living

by the mantra of the founder we deliver

solutions before the customer knows he

has a problem in recent years the

company has had problems the company has

lost market share and they have made

losses in the last two years the new CEO

wants to address the problem by using

Coty's eight steps to solve the problem

the new CEO has established a sense of

urgency his message is clear the

existence of the company is threatened

to back this message he also makes it

public in the Start magazine that the

company has lost an important customer

in step two the CEO forms a powerful

guiding coalition with himself as leader

he knows he has to assemble 20 to 50

important persons from the organization

with shared commitment and enough power

to lead the change effort he knows that

a major transformation generally demands

activity outside of formal boundaries

expectations and protocol therefore he

hires consultants from kata

international and invites a key customer

to participate in the coalition a market

survey shows that the company's brand

reputation is high but the products have

become too expensive and the products

contain too much indifferent

functionality in step 3 the guiding

coalition has to

creative vision that is relatively easy

to communicate and appeals to both the

internal and external stakeholders the

coalition wants to change the old mantra

into a vision centralized around the

customer the new vision is we invent

jointly with our lead customers the team

also has to develop strategies for the

realization of the vision in step four

the guiding coalition has to communicate

the vision to the employees of the

organization and external stakeholders

all the members of the coalition have to

communicate the same message anywhere

and everywhere the CEO and other

executives have to visit customers and

participate in fairs where customers

come instead of tech fairs they also

have to prioritize the marketing and

sales department executives have to walk

the talk externally as well as

internally in step 5 the coalition

encourages executives as well as

employees from different departments to

get in contact with customers the top

management changes the rules about

contacting and working together with

customers before it was only the key

Account Manager who had contact with the

customer now the rules are changed

employees from the logistics department

R&D department and other departments are

encouraged to contact their counterparty

in the organization of the customer the

company is shifting from key account

management butterfly leveraging to

diamond collaboration with the customer

the role of the key account manager is

totally changed management will have to

layoff those who resist the change

vision

step six the guiding coalition has to

announce some short-term wins the CEO

goes public with a new product developed

jointly with one of the lead customers

the product development phase only took

12 months which is twice as fast as

normal the materials of the new product

are recyclable and the production costs

are cut by 30% this is due to the fact

that all departments have optimized

together in partnership with the

customer the CEO publicly recognizes and

rewards the employees who have

contributed to the success with the

strategy of developing new products

together with the customer in step 7 the

guiding coalition must use the increased

credibility from the win in step 6 to

change other conditions undermining the

vision their next battle to win is to

integrate their value chain with lead

customers and share big data some

executives do not want this openness

with the customers they will try to

stall further developments in this

direction therefore the guiding

coalition has to reinvigorate the change

process again and again they have to win

a lot of battles before the war is won

in the eighth and last step leaders must

create new social norms and shared

values consistent with changes they have

to promote people into leadership

positions who personify the new approach

they must want to work together with

customers they have to see them as

allies the company has reached the

vision when leaders and employees do not

behave differently in terms of whether

it is a colleague or a partner from a

customer they are working together with

the war is one

now it is time for a new vision and a

new beginning at step 1 let us now

consider a criticism of the model it is

a rigid approach that you can only take

one step at a time some scholars argue

that you can have 8 different speeds in

an organization the vision is the same

but the changes happen at different

speeds in different parts of the

organization some steps are not relevant

in some contexts a simple example is the

replacement of major software used to

process operations or the change of

equipment on a manufacturing line in

these cases the changes are often

irreversible and so step 7 and 8 might

not be relevant dealing with

difficulties during change management

planning changes according to Coty's

framework should limit those obstacles

but the model is not detailed enough to

provide help in all scenarios Coty's

time frame is measured in years

short-term wins are within 12 to 24

months the circumstances may have

changed radically

before all eight steps have been

completed the model gives you an

overview of the different steps in a

change process in an organization and

that there is a logical path through a

change process the model shows you what

conditions to consider during a change

process

you